Restaurant Food Cost Calculator

Enter your menu item price, total ingredient cost, and target food cost percentage to calculate your actual food cost %, expected profit, and whether your pricing hits your margin goals. The Restaurant Food Cost Calculator breaks down your cost vs. revenue so you can price menu items confidently and protect your bottom line.

The price customers pay for this dish

Total cost of all ingredients used in this dish

%

Industry standard is typically 28–35% for restaurants

How many portions of this dish you sell per week

Used for annual savings projection only

Typically 48–52 weeks for most restaurants

Results

Actual Food Cost %

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Gross Profit Per Portion

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Target Ingredient Budget

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Cost Variance (vs Target)

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Estimated Weekly Revenue

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Estimated Weekly Gross Profit

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Estimated Annual Revenue

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Estimated Annual Gross Profit

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Margin Status

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Revenue Breakdown Per Portion

Results Table

Frequently Asked Questions

What is restaurant food cost percentage?

Food cost percentage is the ratio of ingredient costs to menu selling price, expressed as a percent. For example, if a dish costs $5 in ingredients and sells for $18, your food cost percentage is 27.8%. It's one of the most important metrics for tracking profitability in any restaurant.

What is a good food cost percentage for a restaurant?

Most restaurants aim for a food cost percentage between 28% and 35%. Fine dining establishments may run slightly higher due to premium ingredients, while quick-service or fast-casual venues often target 25–30%. The 'ideal' number depends on your concept, overhead, and overall margin strategy.

How do I calculate food cost percentage?

Divide your total ingredient cost by the menu selling price, then multiply by 100. The formula is: Food Cost % = (Ingredient Cost ÷ Menu Price) × 100. For example, $5.40 in ingredients on an $18 dish = 30% food cost.

What is the difference between actual and target food cost?

Target food cost is the percentage you want to achieve based on your margin goals — e.g. 30%. Actual food cost is what you're currently spending relative to your menu price. If your actual is higher than your target, your dish is underpriced or your ingredient costs are too high.

How can I reduce my food cost percentage?

You can lower food cost by renegotiating supplier prices, reducing waste and portion sizes, engineering your menu to promote high-margin dishes, or modestly increasing menu prices. Tracking food cost per item (rather than averaged across the whole menu) helps you identify exactly where profitability is leaking.

Should food cost percentage be the same for every menu item?

No — individual items can vary quite a bit. The key is that your overall blended food cost hits your target. High food cost items like steaks may be offset by low-cost beverages or sides. Menu engineering strategies deliberately balance high-margin and high-popularity dishes.

What costs are included in food cost?

Food cost includes all direct ingredient costs used to produce a dish — proteins, produce, dairy, dry goods, sauces, garnishes, and packaging if applicable. It does not include labor, utilities, rent, or other operating expenses, which are captured separately in your overall cost of goods sold (COGS) or prime cost calculations.

How does this food cost calculator help with menu pricing?

Enter your ingredient cost and target food cost percentage to instantly see whether your current menu price is on track. The calculator also shows your gross profit per portion, weekly and annual revenue projections, and flags whether you're over or under your target margin — making it a practical tool for pricing new dishes or reviewing your existing menu.

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